Search results for: Segmentation, Targeting
To reach different markets or promote products or services to different locations or different people companies use a method called market segmentation. As Cumming (1994) explains, “Market segmentation describes the division of a market into homogenous groups which will respond differently to promotions, communications, advertising and other marketing mix variable.” Therefore, market segmentation is very important for most of all companies around the world. If a company cannot reach the market or area they will success; or the product or service they provide too expensive so the market they are in cannot afford, surely that company cannot expect to prospers but even fails as a company. Market segmentation Market segmentation is to divide the market into smaller segments. The main reason behind the market segmentation is to make easier to address the needs of smaller groups of customers, particularly if they have many characteristics in common (Breen, 2003). However, there are thing marketer needs to consider to see if a market must be segmented. The market in question must be large enough to segmented. Differences must exist between members of the market and these differences must be measurable through traditional collection methods (McElligiot, 2003). Lancaster et al (2002) argues that there is no “golden rule” when it comes to segmenting consumer markets. The marketing firm might have to investigate using different segmentation variables in order to identify the overall structure of market. Often it may be necessary to use a combination of segmentation variables to define the precise market segment. There are four variables commonly used for segmenting consumer markets: Geographic segmentation Demographic segmentation Psychographic segmentation Behavioural segmentation The first two are geographic and demographic segmentations are physical attribute classification, which refers to the dividing of a market into groups based characteristics, such as location, population, country of origin,…
Founded in 1995, BYD Company Limited is a leading technology company that has established itself as an industry leader in electronics, automotives, renewable energy, and rail transit. As a global leader with more than 30 industrial parks across 6 continents, BYD’s zero-emission solutions, focused on energy generation and storage, are expansive and widely applicable. The electric automaker sold 26,864 million units of cars in 2022 , generating operating revenue of RMB 424,061 million, an increase of 96.20% compared to the previous year. The company delivered a record high of 1,788,000 new energy vehicles in 2022, representing a year-on-year growth over 217.6% . The electric vehicle (EV) giant pursues a business strategy of cost leadership fuelled with extensive vertical integration and an accelerated pace of new model development. BYD organizational structure integrates the elements of matrix structure, independent brands, emphasis on R&D and regional variations. Organizational culture of the EV behemoth, on the other hand, is associated with meritocracy, focus on cost-cutting and prioritizing company values. As one of the leading rechargeable battery manufacturers in the global arena BYD possesses certain strengths such as vertical integration and cost advantage, leadership in technological capabilities and economies of scale advantage from massive manufacturing. At the same time, the company has certain weaknesses. These include overdependence on domestic market, too broad range of businesses and dependence on subsidies by Chinese government to sustain cost advantage. BYD Company Limited Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on BYD. Moreover, the report contains analyses of BYD’s business strategy, leadership and organizational structure and ecosystem. The report also analysis marketing strategy, ecosystem and discusses the issues of corporate social responsibility. 1. Executive Summary 2. Business…
Company reports, analysis and business research methods since 2011 by John Dudovskiy Save hours of business research by using a library of thoroughly written reports and articles. See Analytical Tools Learn Writing Dissertation Business reports on world’s top companies See All Reports Why Us? All you need for your business research Trusted source of knowledge, honed by years of experience, offering unparalleled depth in business reports, analysis, and research methods since 2011. Your journey to informed decision-making starts here! Competent Researchers A team of seasoned dissertation advisers with practical business management experience. Comprehensive Reports Application of major tools SWOT, PESTEL, Porter’s 5 Forces, Value Chain etc. within a single report. Dissertation Guide Comprehensive guidance from the selection of the research area to the completion of the final draft. Up-to-date Data Regularly updated articles and business reports reflect changes in the macroeconomic environment. Business Analytical Tools SWOT Analysis Ansoff Matrix PESTEL Analysis 7Ps of Marketing Segmentation, Targeting Marketing Communication Mix Porter's Five Forces Analysis Value-Chain Analysis McKinsey 7S Model SWOT Analysis A simple yet powerful framework for assessing a company's competitive position, developing business strategies, and making informed decisions. Strategic analytical tool for analyzing: Strengths Weaknesses Opportunities Threats Learn More Ansoff Matrix A marketing planning model that helps companies to identify and evaluate their growth options and determine its product and market strategy. The model integrates four different strategy options: Market Penetration Product Development Market Development Diversification Learn More PESTEL Analysis Strategic analytical tool for assessing external factors affecting businesses. The PESTEL acronym stands for: Political Economic Social Technological Environmental Legal factors impacting companies Learn More Marketing Mix (7Ps) Comprises elements of the marketing mix. Companies manipulate each element based on their marketing and business strategy: Product Place Price Promotions Process People Physical Evidence Learn More Segmentation, Targeting, Positioning (STP) Consequent…
Marriott International is a worldwide operator, franchisor, and licensor of hotel, residential, timeshare, and other lodging properties in 138 countries and territories under 30 brand names. Started as a root beer stand in 1927 in Washington D.C., USA, Marriott has grown into the largest hotel chain in the world. For the full year 2022, gross fee revenues totalled USD 4.1 billion, a significant increase of more than 50 percent compared to 2021. Adjusted EBITDA reached nearly USD 3.9 billion in 2022, up almost 70 percent year over year. Full year adjusted diluted earnings per share (EPS) more than doubled from 2021, totalling USD 6.69. In 2022, Marriott International grew from 7,989 properties (1,479,179 rooms) at year-end 2021 to 8,288 properties (1,525,407 rooms) at year-end 2022, reflecting gross additions of 394 properties (65,376 rooms) and deletions of 94 properties (19,079 rooms), including the impact of the Company’s decision to suspend its operations in Russia. Marriott business strategy integrates pursuing asset-light business model and growing through acquisitions. Moreover, the largest hotel chain in the world focuses on increasing customer segment known as “bleisure travellers”. CEO Anthony Capuano and senior management pursue servant leadership style and the hotel chain has a hybrid organizational structure that combining elements of matrix and functional structures. Marriott International Inc. Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Marriott. Moreover, the report contains analyses of Marriott’s business strategy, leadership and organizational structure and ecosystem. The report also analysis marketing strategy, ecosystem and discusses the issues of corporate social responsibility. 1. Executive Summary 2. Business Strategy 3. Marriott Stock Performance Analysis 4. Leadership 5. Organisational Structure 6. Organizational Culture 7. Marriott and Ansoff Matrix 8. SWOT Analysis…
Netflix Inc., the largest streaming service in the world, was incorporated on August 29, 1997 and began operations on April 14, 1998. The entertainment services provider has 231 million paid memberships in over 190 countries. The company employs about 12,800 people in more than 25 countries. Consolidated revenues for the year ended December 31, 2022 increased 6% as compared to the year ended December 31, 2021, due to the 6% growth in average paying memberships and a 1% increase in average monthly revenue per paying membership. Netflix business strategy involves prioritizing revenues maximization over membership growth and increasing investments on original content. Moreover, the streaming service has decided to stay focused on movies, series and documentaries not entering news and live sports segments. The on-demand media provider had change of leadership in 2023 with co-founder Reed Hastings stepping down from the role of co-CEO and Ted Sarandos and Greg Peters becoming new co-CEOs. The largest streaming service in the world has flat organizational culture and its organizational culture has been a subject of case studies in business schools for its unconventionality and effectiveness. Specifically, Netflix organizational culture effectively encourages decision making by employees at all levels and the company has taken information sharing to a whole new level. The popular streaming platform despises rules and communication practices there are candid and direct. Along with its obvious strengths such as first mover advantage, quality original content and global presence, the entertainment services provider has certain weaknesses as well. Namely, Netflix has high level of indebtedness and its business model depends on other companies. Furthermore, the company is over-dependent on North American home market and there is a room for improvement on its customer services. Netflix Inc. Report contains the application of the major analytical strategic frameworks in business studies such as…
Founded in 1993 by Jensen Huang, Chris Malachowsky and Curtis Priem, Nvidia Corporation is the multinational technology company that aims to solve the world’s visual computing challenges. The GPU maker is the 7th largest company in the world with a market cap of around USD 1 trillion. For fiscal year 2022 the revenue was a record USD 26.91 billion, up 61 percent from USD 16.68 billion a year ago. Gross margins expanded to 64.9 percent, and earnings per share were USD 3.85, up 123 percent from a year ago (Annual Review, 2022) Nvidia business strategy involves benefiting from the first mover advantage, prioritizing performance of products over their costs and pursuing vertical integration. The company’s co-founder and CEO of 30 years Jensen Huang is famous for his charismatic leadership style and his ability to inspire and motivate his team. The multinational technology company has functional and hybrid organizational structure and divides its business practices into various functions such as engineering and product development, supply chain and operations, human resources, finance and accounting and legal and compliance. Nvidia organizational culture integrates the elements of innovation, intellectual honesty, high performance and inclusion and diversity. Within the framework of Ansoff Grow Matrix the company uses all four growth strategies – market penetration, product development, market development and diversification in an integrated manner. The world’s most valuable semiconductor company possesses certain strengths such as global leadership in GPU market, unique position to benefit from the increasing popularity of artificial intelligence (AI) and more than 370 partnerships revolving around self-driving cars. Furthermore, Nvidia possesses advanced R&D capabilities and these allowed the company to reach its current state. At the same time, the software and fables company has serious weaknesses that need to be addressed. At the moment Nvidia depends on a single type of product…
Founded in 2010 in Manhattan USA by Adam Neumann and Miguel McKelvey, WeWork Inc. is a global flexible workspace provider that comprises a network of 756 locations in 38 countries. The co-working giant has approximately 590 thousand physical memberships as of December 2021 (Annual Report, 2021). In the US in 2021 WeWork represented approximately 0.5% of all commercial office space and 63% of Fortune 100 companies are WeWork members WeWork’s mission is to empower tomorrow’s world at work. The workspace provider has a business strategy of digitalizing the real estate business and offering space as a service. The company had severe leadership and ethical challenges under controversial co-founder and the first CEO Adam Neumann, but the current CEO Sandeep Mathrani is bringing discipline and maturity to the leadership. The hierarchical organizational structure of the company has allowed Mathrani to turn around the business to a certain extend via reducing operational costs and focusing on the core business. The co-working and office space operator has considerable strengths such as solid international presence, brand recognition and experience in its niche. At the same time, WeWork has certain serious weaknesses that include the absence of profitability and high level of indebtedness. Moreover, WeWork brand image has been severely damaged due to management and ethical issues under the leadership of Adam Neumann as discussed throughout this report. WeWork Inc. Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on WeWork. Moreover, the report contains analyses of WeWork’s business strategy, leadership and organizational structure and ecosystem. The report also analysis marketing strategy, ecosystem and discusses the issues of corporate social responsibility. 1. Executive Summary 2. Business Strategy 3. Leadership 4. Organisational Structure 5. Organizational Culture…
Marketing can be defined as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.[1] In simple terms, marketing is the action of promoting and selling of products and services. The most popular marketing concepts and tools include the following: Marketing Strategy 7Ps of Marketing Segmentation, Targeting & Positioning Marketing Communication Mix Brand Essence Wheel Brand Development Process Relationship Marketing [1] Definitions of Marketing (n.d.) American Marketing Association, Available at: https://www.ama.org/the-definition-of-marketing-what-is-marketing/
Founded in 1985 by Howard Schultz, Starbucks Corporation (NASDAQ:SBUX) currently operates in more than 34,000 stores in 84 markets according to its mission statement “to inspire and nurture human spirit – one person, one cup and one neighbourhood at a time”. Starbucks Corporation brand portfolio consists of Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange and Ethos and it sells coffee, tea, other beverages, and a variety of food products. There are two formats of Starbucks stores: company-operated and licensed stores. By the end of fiscal year of 2021, Starbucks had 17,133 (51%) company-operated stores and 16,700 (49%) licensed stores. As of October 2021, Starbucks had approximately 383,000 employees worldwide, including 245,000 employees in the US. The world’s largest coffeehouse chain refers to its employees as partners. Starbucks results for fiscal 2021 demonstrate the overall strength and resilience of the brand. Consolidated revenues increased 24% to USD29.1 billion in fiscal 2021 compared to USD23.5 billion in fiscal 2020, primarily due to business recovery from the COVID-19 pandemic. Also contributing to the increase was USD576 million of incremental revenue attributable to the extra week in fiscal 2021. Starbucks business strategy is associated with providing customers a Starbucks Experience, i.e. a ‘third place’ experience away from work and home, where people can have quality time with friends or alone enjoying quality coffee, beverages and fresh food. Currently, the company is following international business expansion strategy with a particular focus on China and Asia Pacific market segment. Starbucks is an acknowledged leader in the industry in terms of exploiting information technology and technological developments. The company has adapted mobile apps for the promotion of its brand and sales of products earlier than the competition. Starbucks app offers multiple features such as store locator, nutrition-based information and rewards program. Moreover, ‘MyStarbucks Signature’ initiative…
IKEA Group owned by Stichting INGKA Foundation is the largest furniture and home appliances manufacturer and retailer in the world. Founded almost eight decades ago in Småland, southern Sweden by Ingvar Kamprad, today IKEA Group has 11 franchisees operating in more than 500 locations in 63 countries (Annual Report, FY21). By the end of FY21 IKEA employed 225000 people worldwide, an increase of 8000 people compared to the previous year. The world’s largest furniture retailer offers nearly 12000 products and develops approximately 2000 new products each year. In FY21 the company generated total operated income of EUR 25.6 billion, an increase of 8.5% compared to the previous year. Net profit for the year amounted to EUR 1.4 billion (Annual Report, FY21). IKEA’s vision is “to create a better everyday life for the many people” and the company follows an extreme cost leadership business strategy along with new product development strategy to realize this vision. International market expansion strategy also represents an important element of IKEA business strategy. Leadership style exercised to manage the home improvement and furnishing chain can be branded as leading by example, as set by the late founder of the business Ingvar Kamprad. Furthermore, the company has integrated the principles of frugality and intangible employee motivation into its leadership practices. The Swedish furniture chain has devised a unique and complicated organizational structure designed to pay minimum taxes. IKEA possesses a number of noteworthy strengths such as market leadership, ownership and efficient application of democratic design concept and solid financial position of the business. At the same time, the global furniture retailer has serious weaknesses as well. These include weak presence in Asia, difficulty to sustain the competitive advantage and the lack of flexibility of the business due to its large size. IKEA Group Report contains the application…